Change is constant in the world of pensions, and keeping up with the thoughts, needs and wishes of pension savers themselves is “essential in serving their needs best.” This, according to an update from UK’s Smart Pension.
Smart Pension has recently released a report with input from over 2,500 UK workers, examining their knowledge and attitudes toward pensions.
As part of their ongoing commitment to releasing key information and best practices across the industry, they’re sharing pertinent research findings ahead of releasing the full report, giving you a snapshot of the most important insights.
Smart Pension’s research study findings reveal key insights into their confidence, attitudes toward engagement, and expectations both “at an overall level, and where they differ between age groups, genders, regions and earnings levels.”
While it is crucial to understand how savers think and what they believe they need, Smart Pension emphasizes that the insights are more than just data points – they highlight “challenges and opportunities in pension provision today.”
And, as workplace pensions play an increasingly core role in financial wellbeing, taking action to “better deliver pensions incorporating this knowledge has the potential to provide better lives for savers and their families.”
This report discusses key trends from recent research, some of which agree with the current consensus and “some of which are counter to prevailing beliefs.”
It also offers practical information which may “help employers and advisers to support employees in securing a better retirement future.”
Research Methodology
This survey explored the views of “2,509 UK workers across all age groups and salary ranges.”
Conducted between December 2024 and January 2025 – a financially challenging time for many due to Christmas – it was “unweighted and used self-reported age data to categorize respondents into four generations.”
This allowed us to analyze both “differences and similarities.”
They also examined results by “gender, income level, and region to gain deeper insights into pension knowledge and attitudes. We’re grateful to everyone who took part.”
At Smart Pension, they look after the workplace pensions of “1.5 million UK workers and over 90,000 employers.”
Their focus is on delivering value, “supporting savers, providing a pension suitable for every business, and making decisions that build long-term trust.”
To achieve this, they regularly engage “with both employers and members, ensuring we understand their needs.”
Their survey of 2,509 UK workers of all ages and salary ranges is part of their commitment to sharing insights that “benefit the wider industry, helping to shape better outcomes for UK pension savers, retirees, providers, and policymakers alike.”
Key findings
- Widespread concern over economic challenges, more prevalent among women than men
- Nearly half (49%) of respondents believe economic challenges will definitely make it harder for their generation to retire comfortably.
- Women (55%) are more likely than men (46%) to express this concern.
- Knowledge limitations may drive uncertainty across all generations, in particular Gen Z
- 1 in 5 UK workers (20%) do not know when they will be eligible for the State Pension.
This could equate to around “eight million working age people.”
Awareness is lowest among Gen Z, with only “58% knowing their eligibility age, compared to 85% of Gen X.”
Where ‘uncertainty’ is a driver of disengagement, “knowledge gaps may limit better outcomes.”
Despite a general perception that younger workers are harder to interest in pensions, and lower knowledge of the State Pension age, Gen Z respondents said they were the “most confident in their pension knowledge of any generation, with 27% rating their understanding at a maximum ‘10/10’.”
However, overall 1 in 6 workers (17%) said they were “unsure or skeptical about whether pensions are worth investing in, highlighting a potential gap in financial education or simply indicating that other things are taking priority.”
More than three quarters (76%) of respondents “believe the State Pension age will continue to rise.”
This belief is strongest among Gen Z respondents (at 81%), “declining slightly among older generations.”
Just 12% of respondents are fully confident (10/10) they will “save enough to retire comfortably.”
Once again, Women (47%) are significantly “less likely than men (59%) to feel confident about their retirement savings when looking beyond those who simply score their confidence ‘10/10’.”
Paradoxically, Gen Z is most confident, with “17% rating their confidence at 10/10, while only 10% of Gen X say the same.”
More than a third (34%) of respondents have “considered pausing workplace pension contributions due to financial pressures.”
This is most common among younger workers – “38% of both Gen Z and Millennials have thought about pausing contributions.”
Women (38%) are more likely than men (33%) to “consider pausing pensions.”
Men were overrepresented in “higher salary bands, whereas women were overrepresented in lower salary bands.”
This points to the median salary of female respondents being “lower than men, which would likely have a knock-on in overall pension savings.”
In a Defined Contribution world, this may also be “compounded by women living an average of four years longer than men.”
59% of respondents believe buying a house is “as good an investment as saving into a pension.”
This may reflect a lack of knowledge about tax advantages and pension growth or the financial pressures people face “highlighting the need for financial education.”
42% of workers say they would benefit from support or guidance “on financial wellbeing and wider retirement planning both now and in retirement.”
This demand is higher among Gen Z (54%) and Millennials (49%).
Higher earners (£75–100k) are twice as likely “to have considered financial advice than lower earners (<£25k).”
30% of respondents believe they will need or want “to continue working after starting to receive pension income.”
Women (33%) are slightly more likely than men (29%) to “expect to continue working.”
Surprisingly, Boomers (36%) are the “most likely generation to expect to work in retirement, compared to 31% of Gen Z.”